Posts Tagged ‘OPMA-01’

Sustainability is the key ingredient why firms continue to exist. But how would they sustain their market from patronizing the products/services they provide? The answer to this is innovation and creative destruction. Companies must know, and be able to adjust to the ever-changing demands of their customers whether they innovate or make a whole new process. Once they meet these demands, they will live another day. And the cycle goes on; they need to continue thinking and improving on how to satisfy their clients. Hence, sustainability comes with innovation and creative destruction, which is a continuous process until a company seizes to operate.

A common interpretation nowadays is that to innovate is to pioneer where in a company initiates a new idea that no one has discovered yet, and apply it in the industry today. An example of this would be on Victory Liner, Inc., the leading bus company plying the Northern Luzon provinces. Upon introducing the free Wi-Fi service to its passengers, the demand for the service went up. This proves that bringing innovation within the company results to more profit and more importantly, consumers that your products/services will be providing for.

Creative destruction means changing an old process, improving it, to satisfy the customers better. As cited by Michael Castelluccio (2013):

Kodak, one of America’s legendary companies and the long-time manufacturer and manager of American photography. The 125-year-old institution was tipped over by digital photography – technology that captured images in files rather than on film – and is only just beginning to crawl out from under the remains of its collapse. (P. 59)

This quotation implies that a better process, simpler and easier, of using the camera capturing images was introduced and the consumers wanted it more than the Kodak provided. It proves that no matter how big a company is, if it failed to adjust to the trending demands of the consumers, it would fall.

Though, innovation will result to creative destruction, it is not always safe to assume that it will be for the betterment of the company’s products/services. In his article about creative destruction, Michael Castelluccio (2013) discussed “disruptive new technologies are rarely incremental in their impact. They can spin things completely around or even bury them” (p. 59). Hence, a company must always be careful in making decisions that will imply innovation which will lead to creative destruction.

To sum it up, a company must be able to sustain in order for it to continue its existence. Sustaining its existence means innovation and creative destruction. But it does not mean that upon doing such process, that the company is assured of success. All decision-making must be planned accordingly because every decision, innovation and creative destruction, is a step towards success or failure.